WEIMOB INC released its unaudited interim results on the evening of August 18, showing a return to revenue growth.

Total revenue reached RMB 869.4 million, up 12.1% year-on-year, while gross profit increased 5.1% to RMB 612.1 million. The gross margin slipped to 70.4% from 75.1% in the prior year period. The company posted a loss of RMB 181.6 million for the period, compared with a loss of RMB 47.2 million a year earlier. On a non-HKFRS adjusted basis, net profit came in at RMB 4.8 million, down 34.2% year-on-year.

After revenue declined 10.6% in the first half of last year, Weimob's latest figure slightly exceeds the RMB 867.4 million recorded in the same period of 2024. The current gross margin is higher than the 66.4% seen in the 2024 interim period but remains 4.7 percentage points below the level achieved in 2025, indicating that revenue recovery is outpacing profitability improvement.

The company has repositioned itself as transitioning from a traditional SaaS provider to an "AI Native commercial services" firm.

This report shows AI has now been integrated across three business lines. Within the core SaaS segment, the existing WAI has been upgraded to "Xingyuan," embedding natural language interaction and task execution into retail software. In precision marketing, the "Tian" series of tools now covers the full marketing workflow. Beyond the core business, the company has listed four AI Native products: Xingqi GEO, Xingtuo, Xingshu, and Xingchuang WIMO, with Xingqi GEO further extending into brand-oriented generative search marketing.

Revenue contribution from AI-integrated products is beginning to rise.

Using the same comparison basis as this announcement, AI application revenue grew from RMB 70.3 million to RMB 133.1 million, an increase of 89.2% year-on-year, surpassing the full-year 2025 figure of RMB 116.1 million. Its share of the "SaaS and AI" segment revenue rose from approximately 16.1% to 28.8%, accounting for about 15.3% of total group revenue. From a product architecture standpoint, Weimob has clearly embraced AI; from a revenue structure perspective, AI is a significant growth driver but has not yet become the dominant revenue source.

Group revenue increased by RMB 93.9 million year-on-year, with AI applications contributing RMB 62.8 million of that growth, roughly two-thirds of the total increment. Precision marketing added approximately RMB 70.4 million, offsetting the RMB 39.3 million decline in SaaS product revenue. The number of paying SaaS merchants still fell 7.1% to 54,970, and smart retail revenue dropped 3.8% to RMB 275 million, though the count of brand merchants remained broadly stable.

The main constraint remains gross margin. Cost of sales for the SaaS and AI business surged 42.2% to RMB 232.8 million, dragging segment gross margin from 62.6% down to 49.5%, with AI application gross margin slipping from 16.4% to 13.8%. Precision marketing revenue grew 20.9% to RMB 408.1 million, while its gross margin improved from 91.3% to 94.0%. The gross profit gains in this segment offset the decline in SaaS and AI, allowing group gross profit to continue increasing.

Precision marketing revenue and ad spending trends are diverging. Gross advertising billings for the first half fell 10.4% to RMB 7.7223 billion, while paying merchants increased 4.0% and average spending per paying user declined 13.9%.

The company said it has stopped serving certain low-margin, high-advance-payment, or long-receivables-cycle clients, and that net rebates from advertising platforms have increased. Since revenue here primarily comes from platform rebates and service commissions, the segment's growth reflects improvements in client mix and operational efficiency rather than an expansion in overall ad volume.

Profit and cash flow remain under pressure. In its non-HKFRS reconciliation, the company added back RMB 109.4 million in share-based payments and RMB 41.4 million in tax effects. Adjusted EBITDA still declined 8.2% to RMB 56.3 million.

However, on the company's own measure, adjusted net profit has remained positive for three consecutive half-year periods. As of the end of June, cash and bank deposits stood at approximately RMB 1.995 billion. Net operating cash outflow was RMB 397.4 million, versus an outflow of RMB 28.06 million in the prior year period. The company attributes this to short-term working capital tied up in expanding new channels for precision marketing.

Overall, Weimob's product system has become markedly AI-centric, with AI applications moving from technology investment into the revenue validation stage, while improved precision marketing efficiency provides profit support for the transformation.

Yet with AI applications not yet the primary revenue source, gross margins still thin, and operating cash flow weakening, calling the transformation "complete" would be premature. The next step is to watch whether margin expansion and cash recovery can improve in tandem as AI revenue scales.